Unilever has signed an agreement for the sale of its Wish-Bone and Western dressings brands to Pinnacle Foods Inc. for a total cash consideration of approximately $580 million, subject to regulatory approval.
The transaction does not include Unilever’s facility in Independence, Mo., at which Wish-Bone and Western brands are currently produced, but the factory will continue to manufacture for Pinnacle Foods under a third-party agreement.
“Wish-Bone is an iconic brand and the number-one Italian dressings brand in the U.S. We believe that the potential of both the Wish-Bone and Western brands can now be more fully realized with Pinnacle Foods. As we continue to shape our portfolio to deliver sustainable growth for Unilever, this change will give us the focus to drive growth behind our core foods portfolio,” said Kees Kruythoff, President of Unilever North America.
The annual turnover for Wish-Bone and Western is approximately $190 million. The transaction, subject to regulatory approval and customary closing conditions, is expected to close later in third quarter, or early fourth quarter 2013.